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Direct Mail in a Multimedia World Darrell Edwards VP of Marketing Mspark.

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Presentation on theme: "Direct Mail in a Multimedia World Darrell Edwards VP of Marketing Mspark."— Presentation transcript:

1 Direct Mail in a Multimedia World Darrell Edwards VP of Marketing Mspark

2 Advertisers Still Prefer Direct Mail The effectiveness of Direct Mail is measurable, more so than for any other media listed. Source: Winterberry; TVB; NAA; CAB; RAB; IAB/PricewaterhouseCoopers; OAAA ** Newspaper ROP/Inserts includes National and Retail expenditures, and does not include internet advertising expenditures. ***Out Of Home replaces Billboards, to include billboards on buses, etc… Direct MailBroadcast TVInternetCable TVRadioNewspaper ROP Inserts Out-of-HomeNews Online $45.2 $49.6 $36.6$24.4$15.7 $14.3$6.7$3.4 Annual U.S. Advertising Expenditures (in billions)

3 Who Says Direct Mail is Dead? “Those marketers who still fully embrace traditional marketing tools such as print catalogs and direct mail have an opportunity to stand out to consumers bombarded by digital pitches.” “But these print channels rarely stand alone. Many of the brands that use print media within their direct marketing efforts weave digital tightly into their campaigns. This approach is becoming a must.” Using direct mail as a foot into the consumer’s door—and then inviting them to connect via another channel—makes great sense. "We're seeing mail being used in some tremendous new ways—especially as part of integrated marketing campaigns," "You can use mail to launch a video on a smart phone, or to make quick purchases out of a catalog or a flyer. We're now able to measure and analyze all of these interactions—that's adding value for senders and causing marketers to give mail a fresh look.“ "Our industry needs to give all marketers a sense that mail can be used in new ways," "We need to drive a better understanding of the value mail brings to integrated marketing campaigns. Mail is the most effective channel for driving customers to a retail location and for driving customers to websites." - Patrick R. Donahoe, Postmaster General

4 Direct Mail Works Until you see the USPS cutting down the mailboxes in your neighborhood…. Direct Mail is Very Much Alive !!

5 Direct Mail Works According to Direct Mail News, in 2012 the average response rate for direct mail was 4.4% for both business-to-business and business to consumer mailings—considerably higher than industry expectations, and surging past electronic mail’s response rate of just 0.12%. - See more at: rate/#sthash.fpueaFcu.dpuf rate/#sthash.fpueaFcu.dpuf According to the Direct Mail Association (DMA) Factbook for 2013, 65% of consumers of all ages have made a purchase as a result of direct mail. - See more at: rate/#sthash.fpueaFcu.dpuf rate/#sthash.fpueaFcu.dpuf And what about ROI? Source: DMA, 2012 Response Rate Report

6 Media Penetration

7 Ads looked at or made purchase from in the last 7 days Readership % of HHs that read print ads Response % of HHs that made one or more purchases as a result of print ads 7 out of 10 read Shared Mail 4 out of 10 purchased from Shared Mail Source: Advertising Readership & Response Tracking Study, TNS Custom Studies, NFO WorldGroup Readership & Response

8 New Normal = Coupons Still Very Popular Do you redeem coupons in any of the following ways? (Check all that apply) Source: BIGinsight MBI, 12.13 Scan them on my smartphone at the checkout (+10% change) Download them to my frequent shopper card (+6% change) Print them out from a website (-2% change) Print them out from an email (-3% change) Cut them out or bring them in from other sources (-3% change) (e.g. newspaper, magazines) Cut them out from advertising inserts (0% change) Total Adults Traditional Media Digital Media

9 More Direct Mail Coupons, Please

10 Bridging to Digital Media

11 Print Drives Digital Response 58% of people said they were more likely to click on a search link for a company if they’re received something in the mail. 67% refer to physical mail when searching for a new product or service online. Direct mail can also improve the performance of other channels. For example, the TV component of campaigns is 37% more effective when direct mail is in the media mix. In the report Tess Alps, chief executive of Thinkbox says: “Direct mail can satisfy those appetites that TV provokes.” Source: Mail Media Centre Report

12 Multichannel : Optimize the path to purchase Direct Mail : Remains a Strong Media! Deals : Digital or Traditional, deals are still a big deal What Does It All Mean?

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